FX.co ★ Brent Extends Gains

Brent crude oil futures saw an increase to approximately $62.5 per barrel on Friday. This rise came on the heels of President Trump's announcement regarding potential secondary sanctions targeting countries that continue to purchase Iranian oil. The United States had already enforced sanctions on multiple Chinese refineries involved in buying Iranian crude, along with several companies and vessels that play a role in its transportation. Further buoying the market, China expressed a willingness to restart trade negotiations with the US, fostering optimism for reduced tensions between the world's two largest consumers of oil. Despite this, oil is set to record a weekly decline of over 5%. This downturn is attributed to ongoing risks related to trade developments, concerns about demand following a contraction in US GDP, and China experiencing its most significant industrial slowdown in more than two years. Additionally, expectations of increased oil supply from OPEC+ exerted downward pressure on prices, with Saudi Arabia indicating it can manage with lower prices and suggesting it may advocate for increased production at the upcoming meeting in May.